MONEY MATTERS

Recession is the word for which many learnt the meaning of it last year. Recession results in slowdown in economic growth and which in turn results in economic crisis. What is the cause of this? Main thing is that people don’t save money for their future. They are spending more and more money on luxuries. Many banks are giving housing loans, vehicle loans etc without knowing whether they can payback or not. Many got the loans and didn’t pay their debts. So money circulation is very much reduced. As a result many investors were afraid to invest their money in new business. At the same time expansion of business also stopped. No new jobs are available for new candidates. So everything stunned. People can’t pay their taxes. Government can’t function properly. Over all GDP of the country went down. Many people lost their jobs. Unemployment increased. As a matter of fact this is not new to world economy. The world has faced many crises. But last year recession affected the world most. Because when compared to past the present world has more globalised economy. So when economic crisis occurs at one place it has vital results globally.

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